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Bureau of Economic Analysis: Personal Income and Outlays: June 2019
This is from an editorial. Hat tip, Donald Trump, Jr.:
{Look: I wouldn't have known about this if I hadn't seen it in his Twitter feed. According to my rules, he gets the credit for pointing this out. I'm seeing to it that the source gets proper attribution. That's all this means.}
Donald Trump Jr. Retweeted
The 99% Get a Bigger Raise: New data show much faster growth in wages and incomes. https://www.wsj.com/articles/the-99-get-a-bigger-raise-11564529382?shareToken=stdd07ca5c9a6545c98684455d0714ab4a … via @WSJ
Link to tweet
OPINION REVIEW & OUTLOOK
The 99% Get a Bigger Raise
New data show much faster growth in wages and incomes.
By The Editorial Board
July 30, 2019 7:29 pm ET
Political discourse nowadays is enough to depress anyone, and the media don’t help by ignoring good economic news. But buck up, Americans: Worker wages are growing much faster than previously reported.
The Bureau of Economic Analysis (BEA) on Tuesday published its annual revisions to personal income data, and the surprise was the huge jump in disposable income and employee compensation.
The revisions show that employee compensation rose 4.5% in 2017 and 5% in 2018—some $4.4 billion and $87.1 billion more than previously reported. The trend has continued into 2019, with compensation increasing $378 billion or 3.4% in the first six months alone. Wages and salaries were revised upward to 5.3% from 3.6% in May year over year. And in June wages and salaries grew at an annual rate of 5.5%, which is a rocking 4.1% after adjusting for inflation.
This is far more than the 3.1% year over year increase in average hourly earnings that the Labor Department’s jobs report showed for June. One reason for the disparity may be that employers are hiring millions of younger, lower-income workers, which may be depressing average hourly earnings as older, more highly paid workers retire.
The BEA also revised overall personal income up by 1.7% for 2017 and 2018 and transfer receipts down 0.7%. In sum, Americans are earning more and relying less on government. Personal savings estimates were also increased by $217 billion for the last two years and are now $1.3 trillion, which means Americans are socking away more of their earnings.
The personal savings rate was revised upward to 8.1% from 6.1% in May, which is much higher than the roughly 5% before the last two recessions. This should make the current economic expansion more durable since consumption isn’t being pumped up largely by increased household debt. Instead consumer spending has increased as wage growth has accelerated amid a tight labor market.
....
Appeared in the July 31, 2019, print edition.
The 99% Get a Bigger Raise
New data show much faster growth in wages and incomes.
By The Editorial Board
July 30, 2019 7:29 pm ET
Political discourse nowadays is enough to depress anyone, and the media don’t help by ignoring good economic news. But buck up, Americans: Worker wages are growing much faster than previously reported.
The Bureau of Economic Analysis (BEA) on Tuesday published its annual revisions to personal income data, and the surprise was the huge jump in disposable income and employee compensation.
The revisions show that employee compensation rose 4.5% in 2017 and 5% in 2018—some $4.4 billion and $87.1 billion more than previously reported. The trend has continued into 2019, with compensation increasing $378 billion or 3.4% in the first six months alone. Wages and salaries were revised upward to 5.3% from 3.6% in May year over year. And in June wages and salaries grew at an annual rate of 5.5%, which is a rocking 4.1% after adjusting for inflation.
This is far more than the 3.1% year over year increase in average hourly earnings that the Labor Department’s jobs report showed for June. One reason for the disparity may be that employers are hiring millions of younger, lower-income workers, which may be depressing average hourly earnings as older, more highly paid workers retire.
The BEA also revised overall personal income up by 1.7% for 2017 and 2018 and transfer receipts down 0.7%. In sum, Americans are earning more and relying less on government. Personal savings estimates were also increased by $217 billion for the last two years and are now $1.3 trillion, which means Americans are socking away more of their earnings.
The personal savings rate was revised upward to 8.1% from 6.1% in May, which is much higher than the roughly 5% before the last two recessions. This should make the current economic expansion more durable since consumption isn’t being pumped up largely by increased household debt. Instead consumer spending has increased as wage growth has accelerated amid a tight labor market.
....
Appeared in the July 31, 2019, print edition.
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, TUESDAY, JULY 30, 2019
BEA 19-37
Personal Income and Outlays: June 2019
Annual Update: January 2014 through May 2019
Personal income increased $83.6 billion (0.4 percent) in June according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $69.7 billion (0.4 percent) and personal consumption expenditures (PCE) increased $41.0 billion (0.3 percent).
Real DPI increased 0.3 percent in June and Real PCE increased 0.2 percent. The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.2 percent.
{snip}
The increase in personal income in June primarily reflected increases in wages and salaries, government social benefits to persons, and supplements to wages and salaries (table 3).
The $21.4 billion increase in real PCE in June primarily reflected a $19.5 billion increase in spending for nondurable goods and a $4.6 billion increase in spending for services, that was partially offset by a decline of $1.5 billion in spending for durable goods (table 7). Within nondurable goods, other nondurable goods (including pharmaceutical products) was the leading contributor to the increase. Within durable goods, motor vehicles and parts was the leading contributor to the decline. Detailed information on monthly real PCE spending can be found in Table 2.3.6U.
Personal outlays increased $44.2 billion in June (table 3). Personal saving was $1.34 trillion in June and the personal saving rate, personal saving as a percentage of disposable personal income, was 8.1 percent (table 1).
Annual Update of the National Income and Product Accounts
The estimates released today also reflect the results of the Annual Update of the National Income and Product Accounts (NIPAs). The update covers January of 2014 through May of 2019.
With today's release, most NIPA tables are available through BEA’s Interactive Data application on the BEA Web site (www.bea.gov). See "Information on Updates to the National Income and Product Accounts" for the complete table release schedule and a summary of results for 2014 through 2018, which includes a discussion of methodology changes. A table showing the major current-dollar revisions and their sources for each component of GDP, national income, and personal income is also provided.
The August 2019 Survey of Current Business will include an article describing the update in more detail. Previously published estimates, which are superseded by today's release, are found in BEA’s archives.
Updates to Personal Income and Outlays
Revisions to the personal income and outlays estimates reflect the results of the 2019 annual update of the NIPAs. Revisions to annual estimates of personal income and outlays for 2014 through 2018 are shown in table 12. Revised and previously published monthly estimates of personal income, DPI, PCE, personal saving as a percentage of DPI, real DPI, and real PCE are shown in table 13. Revised and previously published annual and quarterly estimates are shown in table 14.
Personal income was revised down $0.1 billion, or less than -0.1 percent in 2014; revised down $1.8 billion, or less than -0.1 percent in 2015; revised down $4.0 billion, or less than -0.1 percent in 2016; revised up $47.9 billion, or 0.3 percent in 2017; and revised up $249.6 billion, or 1.4 percent in 2018.
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BEA 19-37
Personal Income and Outlays: June 2019
Annual Update: January 2014 through May 2019
Personal income increased $83.6 billion (0.4 percent) in June according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $69.7 billion (0.4 percent) and personal consumption expenditures (PCE) increased $41.0 billion (0.3 percent).
Real DPI increased 0.3 percent in June and Real PCE increased 0.2 percent. The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.2 percent.
{snip}
The increase in personal income in June primarily reflected increases in wages and salaries, government social benefits to persons, and supplements to wages and salaries (table 3).
The $21.4 billion increase in real PCE in June primarily reflected a $19.5 billion increase in spending for nondurable goods and a $4.6 billion increase in spending for services, that was partially offset by a decline of $1.5 billion in spending for durable goods (table 7). Within nondurable goods, other nondurable goods (including pharmaceutical products) was the leading contributor to the increase. Within durable goods, motor vehicles and parts was the leading contributor to the decline. Detailed information on monthly real PCE spending can be found in Table 2.3.6U.
Personal outlays increased $44.2 billion in June (table 3). Personal saving was $1.34 trillion in June and the personal saving rate, personal saving as a percentage of disposable personal income, was 8.1 percent (table 1).
Annual Update of the National Income and Product Accounts
The estimates released today also reflect the results of the Annual Update of the National Income and Product Accounts (NIPAs). The update covers January of 2014 through May of 2019.
With today's release, most NIPA tables are available through BEA’s Interactive Data application on the BEA Web site (www.bea.gov). See "Information on Updates to the National Income and Product Accounts" for the complete table release schedule and a summary of results for 2014 through 2018, which includes a discussion of methodology changes. A table showing the major current-dollar revisions and their sources for each component of GDP, national income, and personal income is also provided.
The August 2019 Survey of Current Business will include an article describing the update in more detail. Previously published estimates, which are superseded by today's release, are found in BEA’s archives.
Updates to Personal Income and Outlays
Revisions to the personal income and outlays estimates reflect the results of the 2019 annual update of the NIPAs. Revisions to annual estimates of personal income and outlays for 2014 through 2018 are shown in table 12. Revised and previously published monthly estimates of personal income, DPI, PCE, personal saving as a percentage of DPI, real DPI, and real PCE are shown in table 13. Revised and previously published annual and quarterly estimates are shown in table 14.
Personal income was revised down $0.1 billion, or less than -0.1 percent in 2014; revised down $1.8 billion, or less than -0.1 percent in 2015; revised down $4.0 billion, or less than -0.1 percent in 2016; revised up $47.9 billion, or 0.3 percent in 2017; and revised up $249.6 billion, or 1.4 percent in 2018.
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